### Trump Administration Pushes AI Chip Sales to Middle Eastern Firms Amid Strategic Concerns

The Trump administration is negotiating the sale of a large quantity of artificial intelligence (AI) chips to government-affiliated firms in the Middle East. This move aims to fortify a strategic alliance against China while bolstering the AI capacities of the region. The deal, which might be confirmed during President Donald Trump’s visit to the area, involves the United Arab Emirates' national AI champion, G42, and the newly established Saudi AI firm Humain, according to sources familiar with the talks. These individuals spoke on conditions of anonymity, as they were not permitted to discuss the negotiations publicly.

A portion of the AI chips is expected to be funneled through a budding collaboration between G42 and OpenAI. Meanwhile, other segments will be directly allocated to G42. The New York Times was the first to report on these potential deals. The White House has yet to provide an official comment on the situation.

Additionally, the Trump administration has sanctioned a memorandum of understanding valued at $9 billion, which involves a U.S. company and Saudi entities in the mining of critical minerals. According to Shahal Khan, founder and CEO of Burkhan World Investments, the arrangement will see Saudi company Grand Mines Mining LLC exploring for minerals such as lithium, cobalt, and rare earth elements in Saudi Arabia and possibly Africa, for export to the United States. The Washington Post obtained documents detailing this agreement.

The approval marks a significant departure from existing U.S. foreign policy norms. The Biden administration had imposed restrictions on the sale of such chips to both countries due to their substantial ties with China and the nature of their governments. Historically, the U.S. allowed chip exports at a slower rate, with additional measures like phased audits of data centers.

Recent years have seen the region’s petroleum wealth and substantial electricity resources sparking interest in partnerships between local governments and Silicon Valley AI companies. While past collaborations, such as one between Microsoft and G42, demanded that the UAE firm remove Chinese equipment to gain U.S. approval, the Trump administration appears keen to expedite these AI chip sales. One source indicated that this strategy could potentially enhance U.S. interests by strengthening connections with the region and advancing American business interests.

This accelerated pace of AI chip sales is expected to significantly boost AI capabilities in the Middle East, potentially positioning these countries as formidable competitors in the global AI landscape. Sam Winter-Levy, a fellow at the Carnegie Endowment for International Peace, warned that while exporting AI technology is beneficial, the current approach lacks strategic depth. He argues that this move might recreate dependencies on authoritarian regimes with close ties to China and Russia.

Prominent tech leaders, including AI czar David Sacks, Cerebras Systems CEO Andrew Feldman, OpenAI CEO Sam Altman, and billionaire Elon Musk, are currently in the region, underscoring the ongoing high-level discussions and investments. Since Trump's inauguration, there have been significant strides in securing major investments in U.S. data center infrastructure from Saudi and UAE companies, driven by the high cost of establishing and maintaining such facilities and the need for regional capacity building as a condition of investment.

Winter-Levy remains critical, suggesting that the Trump administration risks giving away a critical strategic technology for short-term gains, rather than driving a harder bargain that reflects the magnitude of U.S. leverage.